Food delivery giant Swiggy’s initial public offering witnessed a 12 per cent subscription on Wednesday, the first day of its share sale. According to data from the National Stock Exchange, the initial share received bids for 1,89,80,620 shares against 16,01,09,703 shares on offer.
The IPO has a fresh issue of shares worth Rs 4,499 crore along with an offer for sale (OFS) of Rs 6,828 crore.
The retail individual investor (RII) quota was subscribed at 54 percent, while the non-institutional investor portion saw 6 percent subscription.
The quick commerce website on Tuesday announced that it has already collected Rs 5,085 crore from anchor investors and aims to raise Rs 11,327 crore from the IPO.
This Bengaluru-based company is valued at around $11.3 billion (approximately Rs 95,000 crore) based on its highest price estimate.
Its rival food delivery company, Zomato, which went public in July 2021, has a market value of about Rs 2.25 lakh crore making its market value twice that of Swiggy.
As per the papers drafted by the company, Swiggy plans to invest the funds generated from the fresh issue in technology, cloud infrastructure, brand marketing and business promotion. The proceeds would further be allocated for debt payment, inorganic growth and other corporate purposes.
Swiggy’s shares are available for public subscription in the price range of Rs 371 to Rs 390 during November 6-8.
The book running lead managers for the offer are Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited, Citigroup Global Markets India Private Limited, BofA Securities India Limited, Jefferies India Private Limited, ICICI Securities Limited and Avendus Capital Private Limited.